So my secretary (and cousin) Camille Pilmer gave me a gift and made me promise to listen to it all the way through before buying a car. The gift was Dave Ramsey’s Total Money Makeover audio book…
I came in kicking and screaming, but came out grateful. I realized that following the baby steps is a matter of the heart not purely a matter of logic. I have to say my ego fights that (especially the whole investment bit and the “average 12% in a ‘good growth mutual fund'” concept…)
But putting all that aside, until we can actually consistently afford to “invest” 15% of our income we have to decided to become Gazelle Intense and TAKE ON the baby steps!
So here’s our game plan:
1. Save up $500 liquid emergency fund (as fast a humanly possible)
2. Save up cash to buy a car (~$2-3k)
3. Complete filling up our $1,000 emergency fund
4. Debt snowball our remaining total debt of about $6,800 (taxes, medical, old overdraft, student loan, traffic ticket, google Adwords) starting from SMALLEST balance to LARGEST balance.
5. Save up 3-6 mos liquid emergency fund
6. Save 15% of income into retirement and onward…
So back to the car question. We (Me AND Gina together :)) to be a 1 car (2 bike) family for a little while as we work through our game plan.
I can say I am more excited about our finances now than at any other time during our marriage. I love how I feel about the money we’re making, what we’re doing to make it (piano service), the consistency of our income, as well as career advancement opportunities (BYU, potentially SLCC & Murray School District, rebuilding at Vinny’s, private tunings). I feel sooo blessed, and we are BEING blessed.
This is a picture of one of Gina’s dream bikes ($600 new)
Here’s a picture of the bike we were blessed with ($50!)
Notice the incredible likeness! (Biggest difference is the top one is a 3-speed and hers is a single speed.)
(Serial number MD(?)0 050330)
And here’s my bike (Jamis Trail X from Hanks Brothers) (~$250 after grips, seat, tube):
Serial number JC082601155 (or HR1209274) (these two numbers are at right angles to each other):
So yeah, we’re doing the right things and being blessed… Later.